Thinking through the Stuff…

As I said the other day, the big traders and investors have yet to sink their teeth into what changed in June 2022. To me that change was that the shock of no more cheap interest rates had made itself known and from there what individuals and corporations did with their money had to produce something of value.

The long tail of overbuilt office space will be with us for some time but it is moving to new owners who are getting it on the cheap and renovating it into useful purposes, primarily residential or manufacturing.

So, to me this hand-off in the economy has had a first stage where the catchy AI terminology is getting a lot of play. It is good to be involved in investing there but the real growth down the road 2025+, will be the small cap kind of manufacturing/infrastructure/clean energy companies.

So far, the commercial real estate problems are keeping pressure on the regional banking sector of small caps, but that is a problem that is being fixed.